Correlation Between Beijing Enlight and Lianhe Chemical
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By analyzing existing cross correlation between Beijing Enlight Media and Lianhe Chemical Technology, you can compare the effects of market volatilities on Beijing Enlight and Lianhe Chemical and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Beijing Enlight with a short position of Lianhe Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Enlight and Lianhe Chemical.
Diversification Opportunities for Beijing Enlight and Lianhe Chemical
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Lianhe is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Enlight Media and Lianhe Chemical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lianhe Chemical Tech and Beijing Enlight is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Beijing Enlight Media are associated (or correlated) with Lianhe Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lianhe Chemical Tech has no effect on the direction of Beijing Enlight i.e., Beijing Enlight and Lianhe Chemical go up and down completely randomly.
Pair Corralation between Beijing Enlight and Lianhe Chemical
Assuming the 90 days trading horizon Beijing Enlight Media is expected to generate 1.35 times more return on investment than Lianhe Chemical. However, Beijing Enlight is 1.35 times more volatile than Lianhe Chemical Technology. It trades about 0.03 of its potential returns per unit of risk. Lianhe Chemical Technology is currently generating about -0.08 per unit of risk. If you would invest 792.00 in Beijing Enlight Media on November 2, 2024 and sell it today you would earn a total of 161.00 from holding Beijing Enlight Media or generate 20.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Enlight Media vs. Lianhe Chemical Technology
Performance |
| Timeline |
| Beijing Enlight Media |
| Lianhe Chemical Tech |
Beijing Enlight and Lianhe Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Enlight and Lianhe Chemical
The main advantage of trading using opposite Beijing Enlight and Lianhe Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Enlight position performs unexpectedly, Lianhe Chemical can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lianhe Chemical will offset losses from the drop in Lianhe Chemical's long position.| Beijing Enlight vs. Anhui Tongguan Copper | Beijing Enlight vs. Holitech Technology Co | Beijing Enlight vs. Zhengzhou Coal Mining | Beijing Enlight vs. Jinhe Biotechnology Co |
| Lianhe Chemical vs. Zijin Mining Group | Lianhe Chemical vs. Wanhua Chemical Group | Lianhe Chemical vs. Baoshan Iron Steel | Lianhe Chemical vs. Shandong Gold Mining |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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